Orion Flour Mills purchased a new machine and made the following expenditures:$55,0005,000Purchase priceSales taxShipment of machine800Insurance on the machine for the first500yearInstallation of machine1,600The machine, including sales tax, was purchased on account, with payment due in 30 days. The other expenditures listed above werepaid in cash.Required:Record the above expenditures for the new machine. (If no entry is required for a transaction/event, select "No journal entryrequired" in the first account field.) Journal entry worksheetRecord the expenditures for the new machine.Note: Enter debits before credits.TransactionGeneral JournalDebitCredit1Record entryClear entryView general journal

Compute the cost of the Machine: Purchase price $55,000 Sales tax $5,000 Shipping of Machine…

Answered: Orion Flour Mills purchased a new…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 43E

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Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for 120,000 miles. Montello uses the units-of-production depreciation method and in year one it expects to use the truck for 23,000 miles. Calculate the annual depreciation expense.
Use the information in Problem A-1 to solve this problem. Assume that the van is five-year property for tax purposes. Required Prepare a schedule of depreciation under MACRS. Round figures to the nearest whole dollar. PROBLEM A-1 A delivery van was bought for 18,000. The estimated life of the van is four years. The trade-in value at the end of four years is estimated to be 2,000. Check Figure Year 3 depreciation, 3,456
Orion Flour Mills purchased a new machine and made the following expenditures: Purchase price $ 66,000 Sales tax 5,550 Shipment of machine 910 Insurance on the machine for the first year 610 Installation of machine 1,820 The machine, including sales tax, was purchased on account, with payment due in 30 days. The other expenditures listed above were paid in cash. Required: Record the above expenditures for the new machine. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Oaktree Company purchased new equipment and made the following expenditures: Purchase price Sales tax Freight charges for shipment of equipment Insurance on the equipment for the first year Installation of equipment The equipment, including sales tax, was purchased on open account, with payment due in 30 days. The other expenditures listed above were paid in cash. Required: Prepare the necessary journal entries to record the above expenditures. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet
Oaktree Company purchased new equipment and made the following expenditures: Purchase price $45,000 2,200 Sales tax Freight charges for shipment of equipment Insurance on the equipment for the first year Installation of equipment 700 900 1,000 The equipment, including sales tax, was purchased on open account, with payment due in 30 days. The other expenditures listed above were paid in cash. Required: Prepare the necessary journal entries to record the above expenditures.
Orion Flour Mills purchased a new machine and made the following expenditures: Purchase price $ 75,000 Sales tax 6,000 Shipment of machine 1,000 Insurance on the machine for the first year 700 Installation of machine 2,000 The machine, including sales tax, was purchased on account, with payment due in 30 days. The other expenditures listed above were paid in cash. Required: Record the above expenditures for the new machine.
Oaktree Company purchased new equipment and made the following expenditures: Purchase price Sales tax Freight charges for shipment of equipment Insurance on the equipment for the first year Installation of equipment The equipment, including sales tax, was purchased on open account with payment due in 30 days. The other expenditures listed above were paid in cash. Required: Prepare the necessary journal entries to record the above expenditures (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 $50,000 2,700 750 958 1,500 2 Record the purchase of equipment.
Oaktree Company purchased new equipment and made the following expenditures:Purchase price $45,000Sales tax 2,200Freight charges for shipment of equipment 700Insurance on the equipment for the first year 900Installation of equipment 1,000The equipment, including sales tax, was purchased on open account, with payment due in 30 days. The otherexpenditures listed above were paid in cash.Required:Prepare the necessary journal entries to record the above expenditures.
A tax and duty-free importation of a 30hp sand mill for paint manufacturing costs P360,113. Bank charges arrester and brokerage cost P5,064. Foundation and installation cost were P25,802. Other incidental expenses amount to P23,060. Salvage value of the mill is estimated to be P61,021 after 30 years. Determine the following: a. Rate of depreciation. b. Depreciation after 11 years. c. Book value after 19 years.
Rochester Flour Mills purchased new equipment and made the following expenditures: Purchase price $ 59,000 Sales tax 5, 200 Shipment of equipment 840 549 Insurance on the equipment for the first year i Installation of equipment 1,680 Required: Record the expenditures. All expenditures were paid in cash. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 Record the expenditures. All expenditures were paid in cash. Note: Enter debits before credits Transaction General Journal Debit Credit
HnH Solutions acquired a machine by making the following payments: Net cash price Rs. 116,000 including 16% Sales tax; Carriage in Rs. 6,000; Insurance in transit Rs. 5,000; Fire insurance for the next 4 years Rs. 8,000; Installation charges Rs. 20,000; Overhauling Charges (Before Use)Rs.2000; Charges to repair the damage caused during installation Rs. 2,000. REQUIRED: Classify the above payments into capital expenditures and revenue expenditures. Give and entry to record acquisition of machine, and another entry to record expenditures by Debiting General Expenses Account.
At the beginning of the current year, Peace Company purchased a machine for P 7,000,000 and received a government grant of P 1,000,000 toward the capital cost. The machine is to be depreciated on a straight line basis over 5 years and estimated to have a residual value of P 500,000 at the end of this period 1. The journal entry to record the government grant as a deferred revenue: 2. The journal entry to recognize income from government grant:

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